Labear Corporation earned revenues of $41 million during 2011 and ended the year with net income of $5 million. During 2011, Labear collected $23 million from customers and paid cash for all of its expenses plus an additional $5 million for amounts payable at December 31, 2010. Answer these questions about Labear’s operating results, financial position, and cash flows during 2011:

Requirements
1. How much were Labear’s total expenses? Show your work.
2. Identify all the items that Labear will report on its 2011 income statement. Show each amount.
3. Labear began 2011 with receivables of $4 million. All sales are on account. What was the company’s receivables balance at the end of 2011? Identify the appropriate financial statement, and show how Labear will report ending receivables in the 2011 annual report.
4. Labear began 2011 owing accounts payable of $8 million. All expenses are incurred on account. During 2011 Labear paid $41 million on account. How much in accounts payable did the company owe at the end of 2011? Identify the appropriate financial statement and show how Labear will report accounts payable in its 2011 annual report.